Government announces 'super-regulator' for financial markets
Thursday 29 April 2010, 7:25AM
By Exposing Unacceptable Financial Activities
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New initiative being introduced by Government, announced by Simon Power tonight, is an insult to the many investors who have lost their life savings in the finance industry mal practices.
The Ministers announcements in his speech to Institute of Finance Professionals New Zealand Inc at the Awards Dinner, concentrates on regulation reviews recommendations, disputes resolution, training, registration etc. However the Minister fails to mention about the powers of enforcement.
The fundamental laws of honesty and integrity seem to have escaped the Minister while he expects this regime to bring back confidence to Mum and Dad investors, New Zealand true Kiwi savers.
The only way confidence will be restored is by law enforcement and the perpetrators being held to account.
While Mr Power discusses in his speech that there are $5b in Kiwi saver, with some concern it is hard to reconcile how he can ignore the breach of the currents laws where $5b has been lost under the legislation following the ‘87 crash.
Failed law enforcement is a major reason for the finance collapse and the investors’ losses. Hon Simon Power has stated tonight “On too many occasions in finance company collapses we heard of investors' money falling to the floor through the cracks between regulators”. It is more common that the regulators have failed to enforce the law.
Coordinator of EUFA Suzanne Edmonds said “The Minister has shown he is out of touch with the reality of the situation and he needs to visit some of our members in their lounge rooms and see for himself what has really gone on, rather than ‘hob-nob’ with the very industry who have created this mess.”
Investors will continue to demand the laws are enforced as it is every New Zealanders natural right to justice to receive protection by law enforcement.
EUFA members, well skilled professionals and the public at large continue to inform the government of the serious issues of breaches of the law. The Government, their officials and the authorities just shun the people.